It is difficult to accurately assess the bay area real estate market because of the many micro markets that exist within its boundaries.  For example, Palo Alto continues to be the shining star with almost every listing generating multiple offers.  The surrounding cities of Los Altos, Mountain View, Menlo Park and the rest of the Mid Peninsula are also experiencing an increase in activity.  But there are some markets that continue to struggle, especially in the South and East Bay.  Also, low inventory continues to be a problem in all areas, with not enough housing to satisfy the many buyers coming through our open houses.

Last month was a very successful month for our office with 75 sales and over $118,000,000 in gross sales volume.  This is almost double what we posted last year and the third month in a row that we have exceeded $100,000,000 in sales.  We are very much aware that these numbers are not just the result of our hard work and effort- but the uniqueness of the market place which we serve.

Something to Think About

Today’s buyers seem to be more attracted to a new or remodeled home as oppose to a fixer-upper.  In existing homes, newly remodeled kitchens, bathrooms and family rooms are high on everyone’s wish list.  If you are selling, it’s important to have as many updated amenities as possible in order to get you the highest price.

This trend is reflected in the National Association of Home Builders’ Remodeling Market Index (RMI), which measures the amount of remodeling activity in the market.  The RMI rose to 46.5 in Q1 of 2011, compared to 41.5 in Q4 of 2010.  This marks the highest level for the RMI since Q4 of 2006.

Mortgage News

Given the fluxuations in the financial market over the past week, interest rates took a turn for the better.  This is great timing as it may be the last time to get locked into a high balance conforming loan program for a low interest rate.  While these loans have been mostly utilized by homeowners for their primary residence, they are in fact also applicable for investment properties as well.  If you are thinking of purchasing investment property, this is great time to get an investment property loan for up to $729,750, with as little as 35% down payment.

Current Interest Rates

CONFORMING (up to $417,000)

30 year fixed: 4. 5%

15 year fixed: 4.0%

7/1 ARM: 3.375%

5/1 ARM: 3.0 %

HIGH BALANCE CONFORMING (up to $729,750)

30 year fixed:  4.625%

15 year fixed: 4.125%

7/1 ARM:  3.625%

5/1 ARM: 3.25%

NON-CONFORMING (over $729,750)

30 year fixed: 5.0%

5/1 ARM: 3.625%